A Guide to Software Development Outsourcing

By admin / April 18, 2021

Are you about to start a software development project? Given the complexity of this process, businesses need to hire a team of experts for the job.

Companies are provided with two choices, to build an in-house team of specialists or outsource these services to a third-party provider. The largest part of businesses decides to outsource their projects because of the lower development costs, greater efficiency, and better flexibility.

There are several outsourcing models for businesses to choose from based on their budgets and project requirements. Regardless of which model you select, the benefits are phenomenal.

The following guide will introduce you to the main models and numerous advantages of software development outsourcing.


When it comes to outsourcing software development, companies can opt from the three available models, each of them providing its own advantages. It’s paramount for the model you choose to fit your project complexity, timescale, and budget. The simplest model is undoubtedly staff augmentation, which means hiring an outsourced team to work with your in-house team. Read here for a better understanding of in-house operations.

Moreover, the staff augmentation method involves face-to-face contact between both teams and working from the offices of the client till the project is finished. In the meantime, the outsourced team depends on the resources of the client to provide the best results.

The dedicated team model is suitable for companies looking for greater responsibility on the part of outsourced professionals. These software developers are in charge of scaling, quality control, staffing, management, workflow, and other tasks connected to project overseeing. This outsourcing model exempts clients from all project responsibilities, as the outsourced team takes care of all tasks from the initial to the ultimate project phase. Nevertheless, upon the request of the client, management and staffing can be directed by the hiring company.

The project-based model, as the name explains, makes the outsourcing company fully responsible for every step of the project. After discussing your business requirements and goals, these professionals will take over the development process without requesting any commitment on the part of the client. The sole focus of the client should be the final product.


Outsourcing software development provides a large number of benefits to businesses, encouraging an increasing number of companies to outsource these projects to third-party contractors. The advantages of software development outsourcing services range from increased efficiency and reduced costs to specialized software expertise. For instance, outsourcing companies provide flexible team capacity and remarkable scalability.

During the project, it’s common for its scope to alter, which means team alterations should be done as well. Anyhow, in-house teams are relatively challenging in terms of scaling. In the case of scaling down, employers would have to let some of their employees go or keep on paying them the same salary. Both solutions are unfavorable, as the former might be detrimental to team morale, whereas the latter is ruinous for the company’s budget.

When outsourcing software development services, clients have nothing to worry about regarding scalability. These professionals can add or remove team members in compliance with the project requirements. The use of resources can also be adjusted to peak periods and slow periods.

Saving time is another important benefit of outsourcing software development services. Such projects require at least several months to build a team. The process of recruitment is often exhausting for employers, as they need to hire professionals with different skill sets. Over seventy percent of the employers face difficulties in selecting the most eligible candidates, which takes plenty of time and patience. Conversely, by hiring a software development outsourcing company, you won’t have to waste time on building a crew.

The most attractive benefit of outsourcing software development services is cost reduction. Creating an in-house team involves various types of expenses, such as recruitment and overhead costs. This link, https://smallbusiness.chron.com/calculate-overhead-costs-3481.html, explains how to calculate overhead costs. You won’t need to pay a cent for recruitment or spend a portion of your budget on renting additional workspace. Also, you will be saving money on training, payroll, and taxes.

Another merit of outsourcing software development services is being provided with high-quality service. These companies offer a contemporary technological approach, a never-ending optimization of skills, efficient problem-solving methods, transparency, and good communication.

Nevertheless, so as to ensure high-quality service, remember to research the provider you plan to hire. Check the portfolio of the outsourcing company to learn more about their experience. If possible, hire a company that has earned numerous awards and accomplishments in the field. Also, remember to check online credibility and customer feedback by exploring social media platforms and visiting trusted customer review sites.

Final word

Outsourcing software development services has become a trend.

Overhead costs are reduced, time to market is faster, while service is of high quality!


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